§ 6A-9-336 - Commingled goods.
SECTION 6A-9-336
§ 6A-9-336 Commingled goods. – (a) "Commingled goods." In this section, "commingled goods" means goodsthat are physically united with other goods in such a manner that theiridentity is lost in a product or mass.
(b) No security interest in commingled goods as such.A security interest does not exist in commingled goods as such. However, asecurity interest may attach to a product or mass that results when goodsbecome commingled goods.
(c) Attachment of security interest to product ormass. If collateral becomes commingled goods, a security interest attachesto the product or mass.
(d) Perfection of security interest. If a securityinterest in collateral is perfected before the collateral becomes commingledgoods, the security interest that attaches to the product or mass undersubsection (c) is perfected.
(e) Priority of security interest. Except as otherwiseprovided in subsection (f), the other provisions of this part determine thepriority of a security interest that attaches to the product or mass undersubsection (c).
(f) Conflicting security interests in product or mass.If more than one security interest attaches to the product or mass undersubsection (c), the following rules determine priority:
(1) A security interest that is perfected under subsection(d) has priority over a security interest that is unperfected at the time thecollateral becomes commingled goods.
(2) If more than one security interest is perfected undersubsection (d), the security interests rank equally in proportion to the valueof the collateral at the time it became commingled goods.